✉news BusinessPersonal Finance first seen 4 h ago, last 4 h ago, peak #33
Treasury Spares ETF Tax-Deferral Loophole, Flags Six Abuses
Original: The "Tax-Free Forever" ETF Redemption Loophole Is Safe. Treasury Just Drew a Line Around Six Ways Funds Have Been Stretching It
The US Treasury has signaled that the ETF redemption mechanism allowing investors to defer capital gains taxes indefinitely will remain intact, while targeting six specific practices where funds have stretched the rules. Fund managers and investors had feared a broader crackdown on the loophole, which lets ETFs avoid realized gains through in-kind share redemptions.
Why now: Investors and fund managers are closely watching whether regulators will curtail one of ETFs' biggest tax advantages.
Evidence
- The "Tax-Free Forever" ETF Redemption Loophole Is Safe. Treasury Just Drew a Line Around Six Ways Funds Have Been Stretching It · 24/7 Wall St.
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